GLOB
Globant
Dividend / Cash flow
★ Quality 8/100Price today
$36.39
what the market pays
Worth
$32.04
calculated cycle value
Price is 14% above its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Established business paying dividends
$34.34
per share
How it's calculated
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Dividend / Cash flow · vs 43 peers
You pay 6.2x times this business's cash flow; its sector median is 26.7x.
11% above what Charlie thinks it's worth (5.5x) — you're overpaying, sector or no sector.
Why does Charlie give it 5.5x?
The multiple is how many times its cash flow the business is worth.
An average business of its kind is worth 26.7x. This one drops from there:
AI disruption risk. its business could be eroded by AI over the long run.
External cyclicality. it depends on a cycle (rates, recession) it doesn't control.
Grows 18% a year. next year's cash flow will be larger than today's.
That's why it's worth 5.5x, less than the 26.7x average.
Why Fair price?
Its free cash flow is $6.27/share × 5.5x multiplier minus $2.30 in negative net cash = $32.04 in intrinsic value. Today's price of $36.39 is just 12% off that value — not cheap, not expensive, that's a fair price.
This is a quality business. The price reflects that quality.
There's no extra safety margin. Not the best time to buy new.
To enter with a margin, the price should drop to $25.63–$30.44.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$25.63
-20% off Value
🟡 Discounted
≤$30.44
-5% off Value
⚪ Today
$36.39
-12% Valor
Fair price
Good business at a fair price. If you already own it, holding makes sense. For a new position, wait for a better price.
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
— Warren Buffett
Model updated · July 2026
The business
Globant alquila ejércitos de programadores latinoamericanos para digitalizar a las grandes marcas.
Globant vende ingeniería de software y transformación digital: arma equipos de desarrolladores (sus 'Studios' y ahora cápsulas con IA) y cobra por proyecto y por hora facturada. Facturó $2.5B con clientes como Disney, Google y Santander. El costo es gente, y por eso el margen bruto se queda en 35%.
El foso es fino. Su ventaja es una cantera de talento en Latinoamérica más barata que la de rivales occidentales y relaciones largas con clientes grandes. Nada de eso impide que otro venda las mismas horas de ingeniería; el negocio depende de retener personas, no de un producto irremplazable.
Revenue history
From $1.3B to $2.5B in 4 years — nearly 1.9x its size. Selling more and more is the base of everything else.
Where each $100 of sales goes
Revenue $2.5B · FY2025
Of every $100 in sales, $96 goes to costs and operations; $4 is left as net profit (4% margin).
Catalysts and risks
Las cápsulas de IA para clientes: nuevo mix de servicios con mejor precio por proyecto.
Expansión en Europa e India para diversificar más allá de EE.UU.
Recuperación del gasto corporativo en tecnología tras la pausa de 2024-2025.
Negocio dependiente de personas: la inflación salarial come el margen del 35%.
La IA que venden también puede abaratar la programación y comprimir sus tarifas.
Exposición a monedas de Latinoamérica (peso argentino) mientras reporta en dólares.
Charlie's note
“Vender horas de ingeniería no merece múltiplos de software: crece 17% pero se queda con apenas 4% de lo que factura. A poco más de 5 veces su caja libre pagas el crecimiento, sin foso incluido. Solo quiero saber quién se lleva a sus programadores, para no estar cuando pase.”
Analysis · July 2026
So when would be a good price for Globant?
By our calculation, not yet. We will email you the day it drops to $30.44 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.